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Removing Barriers Blog

CUNA Follows-up with CFPB Regarding Credit Card Market
Posted June 17, 2015 by CUNA Advocacy

In a May 18, comment letter to the CFPB, CUNA provided input on a number issues related to the credit card market. As part of its review of the credit card market, the CFPB extended the deadline until June 17 for comments on online disclosures, grace periods, add-on products, and debt collection. Today, CUNA filed another letter with the CFPB regarding these four areas as they relate to credit cards.

CUNA encourages the Bureau to explore the overall effectiveness of credit card disclosures, as well as ways in which disclosures can be simplified. However, we urge the Bureau to be mindful of the financial resources credit card issuers incur with each change to a required disclosure—even if that change is minor. We caution the CFPB from any changes to the disclosures for grace periods before conducting a thorough cost-benefit analysis of such changes.

As part of its review, the Bureau seeks to better understand debt collection practices within the credit card industry. Unlike many larger financial institutions, credit unions often go out of their way to work with members that are experiencing financial difficulties and unable to make their monthly payments. The CFPB’s review should include a comparison of the delinquency and charge-off rates of banks to credit unions.